Stock price was hinted at in the announcement

Assignment Help Finance Basics
Reference no: EM132589617

Firm A is one of the largest airlines in the world and is based in Europe. Firm A sold all its struggling operations that operate in the United States to Airline B for a price much less than industry experts had expected.

Despite this lower than expected sales price, Firm A's stock price sharply increased. The primary explanation for the rise in the stock price was hinted at in the announcement.

Firm A indicated they would not rush on spending dollars from the sale on non-value adding projects but were considering share repurchases.

Answer the following:

What is your interpretation of this scenario?

Reference no: EM132589617

Questions Cloud

Develop a persuasive and research-based argument : For this debate, you must develop a persuasive, research-based argument showing the extent to which your assigned influence affects development.
Make the journal entry to record the distribution : Make the journal entry to record the distribution of a small common stock dividend would include a?credit to paid in capital in excess of par-common stock
How would you want school staff to talk with children : How would you want the school staff to talk with the other children about your child's specific needs and accommodations? In addition to the teacher.
Compute the cost of timber sold related to depletion : Determine the cost of timber sold related to depletion for 2020. (Round intermediate calculations to 5 decimal places, e.g. 1.24654)
Stock price was hinted at in the announcement : Firm A sold all its struggling operations that operate in the United States to Airline B for a price much less than industry experts had expected.
What issues do family and friends come to you for help : Developing a career goal is a great way to take charge of planning your career and a useful tool to manage your career effectively. Many individuals may not.
BMGT7009 Leadership in Business Assignment : BMGT7009 Leadership in Business Assignment Help and Solution - Toi Ohomai Institute of Technology, New Zealand - Assessment Writing Service
Find the cost of timber sold related to depletion : Determine the depreciation expense and the cost of timber sold related to depletion for 2011. (Round the final answers to 0 decimal places, e.g. 5,125.)
Operations management and strategy : Identify all of the areas of a consumer products company in which statistical quality control can be applied.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd